This document summarizes a workshop on visualizing business models and value propositions in wealth management. The workshop aims to teach participants two simple tools: value proposition visualization to understand and compare a wealth manager's value proposition; and business model visualization to understand a wealth manager beyond their value proposition. The agenda includes breaking into groups to draw the value proposition and client acquisition channels of example banks, then presenting and discussing the visualizations.

1. Visualizing Business Models and Value Propositions in Wealth Management Dr. Alexander Osterwalder - alex@arvetica.com April 2007

3. Agenda 11:00 INTRO BREAK OUT SESSION I Examples “ COURSE” group work value proposition draw the value proposition of a bank plenary visual examples group presentation & visual comparison presentation objectives & agenda presentation business model going beyond the value propositions group work client acquisition channels draw a bank’s client acquisition strategy plenary visual examples group presentation & discussion 11:10 12:30 12:45 BREAK OUT SESSION II WRAP-UP 13:45 plenary take- away group discussion warm-up

4. crafting value propositions

6. Group Warm-up what are the 8 most important competitive attributes that characterize a bank’s wealth management value proposition? (e.g. price, investment performance, private equity access, …) attribute 2 e.g. price attribute 1 e.g. performance

8. Break-out 1: Draw a Value Proposition (i) each group describes the value proposition of “their” bank by rating the 8 attributes we selected together attribute 1 attribute 2 attribute 3 … attribute 8 1 - low 5 - high 3 - medium bank’s performance 30 min. [Kim & Mauborgne (2002) Charting Your Company's Future]

9. Break-out 1: Draw a Value Proposition (ii) describe the value proposition of each group’s bank by using the identified 8 attributes let’s go

10. Comparing Offers Visually [Kim & Mauborgne (2002) Charting Your Company's Future]

11. business models

13. Beyond the Value Proposition: Business Models VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS ACTIVITY CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams CLIENT ACQUISITION CHANNELS [Osterwalder (2004) The Business Model Ontology]

14. crafting client acquisition channels

15. Client Acquisition Channels VALUE PROPOSITION CUSTOMER SEGMENTS CLIENT ACQUISITION CHANNELS value proposition 1 value proposition 2 … channel 1 channel 2 … target customer 1 target customer 2 … CUSTOMER OFFER describing how a wealth management bank acquires its clients

16. Break-out 2: A Bank’s Acquisition Channels VALUE PROPOSITION HNWI Targeted Advertising CUSTOMER OFFER Referrals Retail Banking Partner Referrals by own Investment Bank UHNWI “ Platinum Club” Referrals by Existing Clients let’s go: 30 min. each group draws the client acquisition channel strategy of a specific bank for each customer segment Example